Coupang interim CEO Harold Rogers seems for police questioning at Seoul Metropolitan Police Company headquarters in Seoul, Jan. 30. Korea Occasions picture by Shim Hyun-chul
Korea’s antitrust watchdog seems to be easing its hard-line regulatory stance in opposition to Coupang, in an obvious strategic retreat amid issues over potential commerce friction with america.
On Thursday, the Truthful Commerce Fee (FTC) mentioned it can not impose a enterprise suspension on Coupang over final yr’s knowledge breach, citing a scarcity of proof exhibiting particular monetary harm to customers ensuing from the leak.
This sharply contrasts with FTC Chairman Ju Biung-ghi’s earlier messaging relating to Coupang. He remained stern in his regulatory view, leaving open the potential for slapping a enterprise suspension on the agency.
The shift is seen as a calculated transfer to keep away from potential commerce tensions with Washington at a delicate time, as Coupang interim CEO Harold Rogers is slated to testify earlier than the U.S. Home Judiciary Committee on Feb. 23. He’ll touch upon his remedy in the course of the probe by Korean police and authorities.
Rogers’ upcoming look earlier than the committee has heightened issues that the continued Coupang scandal right here may spill right into a wider commerce battle between Seoul and Washington.
Korea is strolling on eggshells after the Donald Trump administration warned that it may reinstate its tariff on imports of Korean merchandise to 25 p.c from the present 15 p.c, citing Seoul’s delayed laws on its funding dedication in Washington.
U.S. lawmakers additionally criticized Seoul’s investigation into Coupang, calling it “discriminatory focusing on” of a U.S.-based agency.
Coupang interim CEO Harold Rogers seems at Seoul Metropolitan Police Company headquarters in Seoul, Jan. 30. He was investigated relating to the agency’s large knowledge leak incident final yr. Korea Occasions picture by Shim Hyun-chul
President Lee Jae Myung and the ruling Democratic Celebration of Korea (DPK) are transferring to tone down their harsh rhetoric in opposition to Coupang. Earlier than Trump’s warning of a possible tariff hike, the Lee administration and ruling social gathering lawmakers had repeatedly issued public criticism of the corporate.
In latest weeks, nonetheless, such rhetoric has noticeably subsided, coinciding with the shift within the FTC’s stance.
“Seoul is more and more cautious that its commerce ties with Washington could also be at stake, so the federal government appears to be recalibrating its strategy by firming down its rhetoric in opposition to Coupang,” an business official mentioned.
Korea is extremely more likely to impose fines on Coupang and order the agency to rectify its enterprise practices to keep away from any further knowledge leaks, based on Rep. Kim Nam-geun of the DPK.
“The FTC mentioned it isn’t contemplating any enterprise suspension for Coupang, as investigators didn’t discover any proof of the leaked knowledge being stolen by a 3rd social gathering,” Kim mentioned Thursday throughout a press convention on the Coupang scandal.
